9911796707
TMI Blog1986 (8) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... t stood completed thereby. This assessment under s. 143(1) was made on 30th Sept., 1982. Thereafter the ITO with the previous approval of the IAC re-opened the proceedings under s. 143(2)(b) and sent a notice under s. 143(2) to the assessee. The assessee duly complied with this notice and attended before the ITO on the date of hearing namely on 7th Feb., 1983. The ITO asked the assessee on that date to produce bank pass books etc, and adjourned the hearing to 18th Feb., 1983. Thereafter, there is no entry in the order sheet to show as to what happened on 18th Feb., 1983. Suddenly, the ITO woke up again after one year and issued notice under s. 143(2) dt. 6th Feb., 1984. This notice was also complied with. Again, the ITO kept quiet for one y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... never clarified to the assessee that the proceedings had been re-opened under s. 143(2)(b). It was also explained that the case of the assessee was very unfortunate and tragic. The assessee's only son died within six months of his marriage and on that account, the widow of the assessee's son/mother received insurance amounts. If fact, that amount is the main amount, which has been added by the ITO, as un-proved cash credit. Further, another amount standing in the name of Smt. Geetha Devi, who is duly assessed to tax, has been added, as un-explained cash credit in the hands of the assessee. These evidences in this connection were produced before the CIT (A), which the CIT(A) has also discussed in his appellate order, but unfortunately, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITO after having previous approval by the IAC. Further, it was argued that in ex-parte assessment, no further opportunity could be given to the assessee for proving the genuine character of the cash credit. 4. We have looked into the facts of the case and the rival arguments. In our opinion, proper opportunity of hearing was not given to the assessee. Notice under s. 143(2) was complied with by the assessee on 7th Feb., 1983, which is clear from the order sheet of the ITO. The ITO asked for certain documents but he did not issue any notice under s. 142(1). Thus, there was no notice issued under s. 142(1) at all at any time. Notice under s. 143(2) was complied with on 7th Feb., 1983. It is extremely surprising that the ITO did not record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... genuine character of the cash credits in question. The case of the assessee is really unfortunate and tragic one as argued before us by the representative of the assessee that the assessee lost his only son in an accident within six months of the marriage of the son. Even for computing the business income, the ITO in our opinion, did not have any basis to compute the business income at high figure of Rs. 15,000 as against the sum of Rs. 2040 shown. Taking the totality of the facts into account, we are of the opinion that the CIT (A) was wholly unjustified in confirming the said ex-parte assessment passed by the ITO and the ITO was wholly unjustified in passing the order under s. 144 and in adding such a huge amount, as unexplained cash cre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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